-warns contracted workers against tax evasion
Two Jaguar motor cars imported by a “prominent city auto dealer” were impounded in July by the Guyana Revenue Authority (GRA), which says it averted a major scam after the value of the vehicles was under-declared.
“…These luxury vehicles are usually over 3000cc, however, on June 14, the customs entries reflected the engine size as below 1498cc,” the GRA explained in a statement from the Office of the Commissioner-General issued on Tuesday.
The agency noted that duty and taxes amounting to over $3.9M were paid, instead of the $10.6M that would have been paid had the correct declarations been made. As a result, the vehicles were confiscated and held at the Customs and Trade Administration compound. They were later removed and secured at the Eccles Warehouse.
The GRA said the fraud was detected as a result of the initiative it has undertaken to minimise tax evasion and avoidance, and to protect revenue and prevent losses. It added that many members of the business community have been utilising “every means necessary” to avoid paying the necessary duties and taxes on their imports. “Common in this scheme is the under-declaration of the actual value of goods,” it explained. The GRA is advising the public that it will not condone such practices and any evidence of tax evasion will result in the guilty party/parties being fined and prosecuted.
Meanwhile, the GRA also expressed concern over independent contractors/ self-employed persons trying to evade paying taxes by posing as employees. It urged all self-employed persons to voluntarily comply with the tax laws by taking the necessary corrective steps, before the organisation is forced to intervene to recover the taxes due.
For the purposes of the GRA, self-employed persons or independent contractors are defined as persons who are bound by the job they are contracted to do and use their own discretion about how it is done. Self-employed persons are required to assess themselves and pay their taxes in quarterly instalments, which are due on the first day of the month following the end of every quarter. However, persons who are in their first year of business are required to estimate their earnings for the year and make payments accordingly. For ongoing operations, the previous year’s earnings must be used to determine the taxes due.
On the other hand, an employee under a contract of employment “agrees to undertake certain duties under the direction of an employer, in return for a wage or salary” from which taxes are deducted.
The GRA also noted that, where necessary, badges of trade such as the profit motive will be considered to determine the existence of trade by a self-employed person or independent contractor for taxation purposes. However, the badges will depend on the circumstances of the taxpayer.
